Senators are still at work on reforming healthcare even though a vote to replace parts of Obamacare failed to pass, White House Budget director Mick Mulvaney said Friday.

"We have not given up. We understand various senators are continuing to talk to each other and to the White House," Mulvaney told CNBC.

"I don't think they can go home without doing something. The healthcare discussion is still very much alive despite the vote last night."

President Donald Trump's administration was disappointed in the failure of the vote in the Senate, he continued, and "I know we're disappointed because Obamacare is still hurting people and it's still the law of the land . . .

"It's a disappointing day, there's no other way to look at it," he added.

The gross domestic product will rise just on the repeal of Obamacare, Mulvaney said, and "we have to get rid of Obamacare in order to get the additional, probably 0.1 percent GDP growth, just from repealing Obamacare."

Reforming the tax code and repealing Obamacare are keys to reaching 3 percent economic growth, he continued, "so they do tie in together."